After buying a house in Cambodia, what is the annual holding cost and will it be difficult to afford?This is a question that many friends who buy a house are concerned about.
The first and biggest expense of owning a property in Cambodia is property tax and property management fees. According to Cambodian law, the property tax rate is 01% charged. This means that if you buy a property, you will have to pay a percentage of the tax based on the market value of the property. This fee is administered by the tax office, which requires the owner to file a tax return between January 1 and September 30 of each tax year.
As for the property management fee, the property management fee for Cambodian apartments is generally 05-1.$8 per flat, according to the different grades of the property in the community, most of them are charged according to the standard of $1 square meter per month, calculated according to the construction area. For villas, some communities may charge a fixed monthly property management fee, such as $40 a month, but not all communities charge this fee. This fee is mainly used for the maintenance of public facilities, cleaning and cleaning services in the community.
Secondly, hydropower charges are also one of the expenses to consider. The official price of electricity in Cambodia starts at 720 riel per kilowatt-hour, which is about 1 yuan$1. The public price of residential water starts at 550 riel per cubic meter, which is about 0 yuan$85. $20 - $60 per month for internet spend, depending on the network** and provider chosen. Garbage collection fees are relatively inexpensive, costing only a few dollars per month.
For those who choose to rent out their property, utility bills are usually borne by the tenant, although as a landlord you also need to pay rental income tax, which is 10% for local landlords and 14% for foreign landlords. If the buyer chooses to live on their own, then the cost of utilities will depend on the living habits of the individual and the family and the frequency of electricity and water.
If you own a private car, you also need to include parking fees in your monthly spending plan, garages in Cambodia are generally not sold, only rented for residents, parking for motorcycles is generally US$10 per month, and car parking is generally US$50 per month.
For investment properties, there are times when renovation and maintenance costs need to be considered. The amount of these costs depends on the condition of the property and the needs of the owner. If the property is used for rent, the owner may have to take on more responsibilities and expenses, such as repairs and renovation costs.
Overall, the annual cost of owning a property in Cambodia is relatively low, but it still requires careful planning and financial management for homebuyers. Understanding the costs and considering your personal financial situation and home purchase plan before making a decision is key to ensuring a smooth and sustainable investment.
Text: Cambodia Real Estate Network Housing Small Land.